Panzhihua Xichang region is in south Sichuan province which is non contestable for seaborne supplies because of the long transport distance from the coast. It is the third largest iron ore producing region after Anshan Benxi and East Hebei. The ore is Panzhihua type which has high vanadium and titanium(V Ti) content and which are produced as a by product. The majority of mines are surface operations. State owned enterprise (SOE) mines accounts for 30% of total production.